Fri Oct 25 2024, by Tyler Gardner

Investing in Your 40s and 50s

If I were investing $100,000 in my 40s or 50s, here are the only two things that I would consider. I’m Tyler, I’m a former financial advisor and portfolio manager. Now I make financial content for free so that you don’t have to pay for it.

1. How Much Do I Want to Protect?

Meaning if the market hits the fan, and it will hit the fan, I don’t wanna be a ding-a-ling and have to ever sell any of my assets at a deep discount. So what would I have invested in that would serve as a buffer asset and help supplement my income?

I might put 20 to 40% of my assets in a combination of the following:

• Money market funds
• CDs
• Short-term treasuries
• Long-term bonds
• TIPS
• Annuities

Yep, even they serve a purpose from time to time. Anyone who tells you otherwise is trying to sell you what they’re selling.

2. How Much Do I Need to Continue to Grow?

Remember, it’s not just about our immediate needs, but about our projected needs. This is the side of our portfolio that we will expect to grow at a rate of 7% to 10%. But because of that expectation, it will also take on more risk.

Index funds, ETFs, blue-chip dividend funds, and real estate investment trusts can all help you put together this part of your portfolio.

3. Dividend Stock Funds

If it were really up to me and this were just my portfolio, I’d truly take a close look at the dividend stock funds. Get a healthy return, relatively stable compared to an index fund, and you still own underlying assets that are meant to appreciate over time.

If any of this is helpful, like and follow, and I’ll keep trying to get you one step closer to where you need to be.

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